All Topics / Legal & Accounting / Cost base on spousal transfer

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  • HamishBlair
    Participant
    @hamishblair
    Join Date: 2013
    Post Count: 10

    PPOR currently in wife’s name, however I intend to purchase it and then develop. Will be much easier to get finance for construction that way.

    I understand there is no stamp duty in Victoria i.e. can be transferred “for love and affection”. Is this only the case if the land is transferred rather than bought at fair market value?

    From a CGT and cost base perspective, does it make any difference whether the land is “transferred” or “bought” for stamp duty purposes?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You wouldn’t want to transfer it for love and affection as you wouldn’t be able to claim any interest. Asset protection issues too. You need to buy it for full market value.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    HamishBlair
    Participant
    @hamishblair
    Join Date: 2013
    Post Count: 10

    Thanks Terry – so if I buy for Market Value (per the ATO’s Market valuation for tax purposes provisions and Spencer v C’wealth 1907) for tax purposes, does this trigger Vic stamp duty.

    Or are they separate ideas i.e. love and affection for stamp duty and market value for CGT?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    s43 Duties act – no mention of love

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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